ICICI Group Companies: Diversified Financial Services

ICICI Bank is a private sector bank in India offering a diversified portfolio of financial products and services to retail,
SME and corporate customers.

Moreover, the Bank has an extensive network of branches and ATMs. Further, it is at the forefront of leveraging technology and offering services through digital channels like mobile and internet banking.

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ICICI Group Structure

Key domestic insurance entities: of ICICI Group are:

  • ICICI Prudential Life Insurance
  • ICICI Lombard General Insurance

A) ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life)

ICICI Bank Ltd and Prudential Corporation Holdings Ltd are promoters of ICICI Prudential Life Insurance Company Ltd (ICICI Prudential Life).

Subsequently, ICICI Prudential Life began its operations in FY 2001. Moreover, on a retail weighted received premium basis (RWRP), it has consistently been amongst the top companies in Indian life-insurance sector. Company’s Assets Under Management (AUM) at 30th September 2021 were ~Rs 2,37087 Crore.

At ICICI Prudential Life offer long-term savings and protection products to meet the different life stage requirements of its customers. The company has developed and implemented various initiatives to provide cost-effective products, quality services, consistent fund performance and hassle-free claim settlement.

Subsequently, in FY 2015 ICICI Prudential Life became the first private life insurer to attain AUM of Rs 1 trillion.

ICICI Prudential Life is also the first insurance company in India to be listed on NSE and BSE.

B) ICICI Lombard General Insurance Company (ICICI General)

ICICI Bank is the promoter of ICICI Lombard.

Further, ICICI Lombard provides general insurance solutions to its customers. ICICI Lombard provides protection solutions for business, personal and project liabilities across rural as well as urban areas in India.

It provides Travel Insurance, 2 wheeler insurance, Car insurance, Health insurance, Home insurance, Business insurance, NRI Services and Rural Insurance to name a few.

C) ICICI Securities Limited (ICICI Securities)

ICICI Securities Limited (I-Sec) is a subsidiary of ICICI Bank Ltd. The company began its operation in May 1995 and continues to grow its operation through expanding its client base and providing different type of services.

ICIC Securities operates http://www.icicidirect.com, a virtual financial supermarket, meeting the three need sets of its clients – investments, protection, and borrowing.

Further, it has four lines of businesses — broking, distribution of financial products, wealth management, and investment banking. the Company serves customers ranging from the retail and institutional investors to corporates to high net-worth individuals to government.

D) ICICI Prudential Asset Management Company (ICICI Prudential AMC)

ICICI Prudential Asset Management Company Ltd is a joint venture between ICICI Bank and Prudential Plc, one of UK’s largest players in financial services sector.

ICICI Prudential Asset Management Company (ICICI Prudential AMC) manages assets worth 4,80,990 Crore + as on 31st Oct, ’21.

Further, it offers 68+ mutual fund schemes to its customers.

E) ICICI Securities Primary Dealership

ICICI Securities Primary Dealership Ltd is prime leader in the Indian fixed income and money markets.

The Company is a SEBI regd Portfolio Manager. It provides both discretionary and advisory services to its clients. It provides services to various large Provident, Pension and Gratuity fund of the country. Moreover, its current client base includes retirement funds of large Public Sector and Private Sector organization.

It has been a leading participant across all segments of the debt markets in India and continue to remain a significant contributor to market volumes and overall development of the debt markets.

F) ICICI Home Finance Company Limited (ICICI HFC)

ICICI Home Finance Company Ltd is a Housing Finance Company, regulated by Reserve Bank of India (RBI). It is a wholly-owned subsidiary of ICICI Bank Ltd.

Moreover, it is a part of the 66-year old ICICI Group. The primary business of the company is to provide a range of home loans and home improvement loans, office premises loans, home equity loans, loan against property to customers and construction finance to developers. It also offers services related to these loans like home and commercial property search in select cities.

Taking the vision of the Government’s ‘Housing for All’ initiative, ICICI Home Finance also offers home loans under the Pradhan Mantri Awas Yojana. Moreover, the company recently introduced a gold loan product in select cities.

Anirudh Kamani is the MD & CEO of the Company. From six branches in 2017, the company has grown its footprint to 135+ standalone branches, including 16 zonal offices in the country.

G) ICICI Venture Funds Management Company

ICICI Venture was found in 1988 through a joint venture between the ICICI Ltd and Unit Trust of India.

In 1998 it became a wholly owned subsidiary of ICICI Ltd. Subsequently, its name was changed to ICICI Venture Funds Management Company Ltd.

ICICI Venture is a wholly owned subsidiary of ICICI Bank Ltd.

Subsequently, in 2002, ICICI Venture migrated from (a) early stage VC investments to late stage investments and (b) proprietary capital oriented funds to Third Party Capital oriented funds.

Further, Private Equity is the flagship strategy of ICICI Venture. Moreover, ICICI Venture typically invests in mid-market companies in India which offer a strong value proposition in the form of a dominant or leading franchise, with substantial growth prospects and sustainable domestic or international competitive advantages.

Further ICICI Venture Real Estate is uniquely placed to provide be-spoke private debt financing solutions (and historically even private equity solutions) for developers.

ICICI Venture seeks to leverage the rich history and legacy of ICICI Bank in providing financing solutions and policy inputs for the great Indian Infra build-out over the past five decades.

H) ICICI Bank UK PLC

ICICI Bank UK PLC offers a range of personal, business, corporate and investment banking services in the UK and Europe. It is a wholly owned subsidiary (WOS) of ICICI Bank Ltd.

The Bank was incorporated in England and Wales on February 11, 2003 as a private company with the name ICICI Bank UK Ltd. It then became a public limited company on October 30, 2006.

ICICI Bank UK operates from 7 locations in the UK and a branch in Germany. Its has approximately a quarter million customers in the UK.

I) ICICI Bank Canada

Established in December 2003. Further, ICICI Bank Canada is a WOS of ICICI Bank Ltd. ICICI Bank Canada is a full-service direct bank with an asset base of about C$6.2 billion as at December 31, 2020, and it is a member of the Canada Deposit Insurance Corporation. Moreover, the Bank offers a wide range of financial solutions to cater to personal, commercial, corporate, investment, treasury and trade requirements.

J) ICICI Group- Other Group Companies

  • ICICI Securities Holding Inc. is a WOS of ICICI Securities Ltd.
  • Further, ICICI Securities Inc. is a WOS of ICICI Securities Holding Inc.
  • Eventually, ICICI Prudential Pension Funds Management Company Ltd is a WOS of ICICI Prudential Life Insurance Company Ltd.

PAT of ICIC Group Companies

ICICI Group Structure PAT 21

A) ICICI Prudential Life Insurance Company Limited (ICICI Life)

The profit after tax of ICICI Prudential Life Insurance Company Limited decreased from ~Rs 1069 Crore in FY20 to ~Rs 960 Crore in FY21 primarily due to additional reserves made for potential Covid-19 claims and increase in tax expenses.

B) ICICI Lombard

The profit after tax increased from ~Rs 1194 Cr in FY20 to ~Rs 1473 Cr in FY21 primarily due to an increase in investment income and premium income, offset, in part, by increase in commission expense and operating expense.

C) ICICI Securities Limited (ICICI Securities)

As per Indian GAAP, the consolidated profit after tax of ICICI Securities increased from ~Rs 553 Cr in FY20 to ~Rs 1094 Cr in FY21 primarily due to an increase in brokerage income, offset, in part, by increase in administrative expenses.

D) ICICI Prudential Asset Management Company (ICICI Prudential AMC)

As per Indian GAAP, the profit after tax of ICICI Prudential AMC increased from ~Rs 1049 Cr in FY20 to ~Rs 1179 Cr in FY21 primarily due to increase in other income and decrease in brokerage and fund related expenses.

E) ICICI Securities Primary Dealership

As per Indian GAAP, the profit after tax of ICICI Securities Primary Dealership increased from ~Rs 266 Cr in FY20 to ~Rs 647 Cr in FY21 primarily due to higher trading gains.

F) ICICI Home Finance Company Limited (ICICI HFC)

Under Indian GAAP, ICICI HFC made a profit after tax of ~Rs 81 Cr in FY21 compared to a loss after tax of ~Rs 117 Cr in FY20 primarily due to an increase in net interest income and a decrease in operating expenditure and provisions.

G) ICICI Venture Funds Management Company

The profit after tax of ICICI Venture decreased from ~Rs 13 Cr in FY20 to ~Rs 4 Cr in FY21 primarily due to lower income from venture capital funds and increase in other administrative expenses.

H) ICICI Bank UK PLC

Profit after tax of ICICI Bank UK decreased from USD 23.2 million (Rs ~164 Cr) in FY20 to USD 14.8 million (~Rs 110 Cr) in FY21 primarily due to lower core operating profits, offset, in part, by lower impairment provision.

I) ICICI Bank Canada

The profit after tax of ICICI Bank Canada decreased from CAD 40.6 million (~Rs 217 Cr) in FY20 to CAD 20.0 million (~Rs 113 Cr) in FY21 primarily due to decrease core operating income, offset, in part, by write-back of provision.

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry’s Publications.

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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